End-To-End Encryption Gets Stuck When Syncing

I am using Nextcloud 17 with the Nextcloud linux client 2.6.4git. I installed the End-To-End encryption app in Nextcloud, enabled it and when I logged into the client I created some new folders and right clicked on the empty folder to encrypt the folder.

I then delete the sync connection and readded it to a folder on my computer with files I want to backup to the cloud using E2EE but it always get stuck when backing up and syncing my files. How does one fix this?

I do not have server side encryption enabled or setup.

I have a similiar problem.
First attemps to sync with E2E Encryption was successfull.
However after having stopped a following sync process and later resumed it - nothing happens. Client says it is synchronizing but not data is transferred.

Any ideas?

PHP 8.1.24
Nextcloud 27.1.3
Windows 10